© Reuters. FILE PHOTO: A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014. REUTERS/Mark Blinch/File Photo
Authored by Fergal Smith
Canada’s primary stock index witnessed a slight uptick on Friday, extending its winning streak for the fifth consecutive week. This growth was primarily driven by the materials sector, which experienced a surge in prices reaching nearly a year-long high.
The S&P/TSX composite index of the Toronto Stock Exchange closed the day with a 0.1% increase, gaining 19.3 points and settling at 21,849.15, marking one of its highest closing levels since April 2022.
Over the course of the week, the index managed to climb by 0.5%, establishing its lengthiest winning streak in 11 months.
“A notable trend we are observing is the shift towards cyclical assets,” stated Greg Taylor, a portfolio manager at Purpose Investments.
“This rotation had previously hindered the performance of TSX over the past six months. However, the current week has been promising with oil prices surpassing $80 and copper breaking the $4 mark.”
With copper prices increasing by 2% to its highest point since April the previous year, investors were prompted to anticipate a potential reduction in output from China, the leading producer. Meanwhile, oil prices settled at $81.04 per barrel, hovering around a four-month high.
Comprising roughly 30% of the Toronto market, resource shares became a significant driving force. The materials sector, encompassing miners of both precious and base metals as well as fertilizer companies, saw a 1% rise.
“We are witnessing a shift as technology and semiconductor stocks, which had been leading, start to face some downward pressure,” Taylor remarked.
The technology sector experienced a 0.8% decline, with BlackBerry (NYSE:) Ltd shares falling by 7.7%. Nonetheless, the sector has seen a 6.5% increase since the beginning of the year.